How the Corona virus is destroying the Australian economy – William Drew (Eco01)

With over 200 cases of the Coronavirus in Australia, the country is preparing for a Corona virus outbreak. With Schools shutting down due to the risk of infection, people panic buying and talk of big sporting events being cancelled or postponed, Australia is preparing for a mass outbreak.

According to the Australian Department of Health the virus is spreading at high rates with now 27 cases and two deaths as of Wednesday the 11th of March. These cases have no connection with overseas travel. With the number of cases increasing so dramatically every day it is impossible to see how deadly the virus will become in the foreseeable future. Now that the Coronavirus has being declared a global pandemic there will be more panic which will lead to the economy falling to a larger extent than it already is.

The Australian economy is being heavily damaged by the Coronavirus which is affecting all those that have a connection and invest in it. With the ASX200 down around 25% and the All Ordinaries down around 20% from a month ago. People may panic and act in a non-rational way which has been seen in the case of people stock buying and following the herd.

Due to the recent announcement that the Australian Government made on Friday the 14th of March, all gatherings containing over 500 people will be cancelled to reduce the spread of the virus. This has lead to massive sporting events being cancelled as well as almost all junior sports and competitions not going ahead. This is unprecedented in our lifetime. The AFL will play round one with no crowds and the Olympics is in doubt. Another big announcement was the cancellation of the Grand Prix, upsetting thousands of spectators and teams.

Below is a video of the Prime Minister Scott Morison Addressing the Country about the Virus.

With many other countries such as Italy, Iran and a lot other European countries in lock down it is looking as though Australia will be one of the next countries that will have to enforce these restrictions for the safety of the community. Except no one knows where the next mass virus outbreak will be so it is advised that people take safety precautions such as washing your hands regularly and self isolating as much as possible. A recent announcement from the Victorian Government announcing a state of emergency will have big impacts on schools and other events which are already in turmoil.